The government is to review the bodies it uses to finance research and development (R&D) in the UK.
It has drawn up legislation to set up a 'blue-skies' scientific research agency that will invest taxpayers' money in cutting-edge technologies such as artificial intelligence.
The new body, called the Advanced Research and Invention Agency, will be given an £800 million budget over four years. The government has said it is committed to increasing public investment in R&D to £22 billion each year.
Commenting on the new strategy, Felicity Burch, Director of Innovation at the Confederation of British Industry (CBI), said: 'This strategy is an important step in ensuring innovation plays its full part in driving economic recovery and addressing the biggest challenges facing society such as decarbonisation, levelling up and health.
'We are pleased to see the scale of ambition and the focus on unleashing business innovation and investment.
'The commitment to increasing investment to £22 billion for R&D provides an important signal to business ahead of the spending review that this government will work with business to deliver on the ambition set out in this strategy.'